Indian medical equipment company seeks PE funding
Sutures India, a Bangalore-based medical equipment manufacturer is seeking $25-40 million from private equity investors. The funds would be used for expansion and other purposes, but as yet no mandates have been given investment banks.
An investment banker told LiveMint that 4-5 private equity firms have looked at purchasing a significant minority stake in the company. Strategic investors in the healthcare sector may also be interested in the asset.
Sutures India, which raised INR350 million ($6.6 million) from Evolvence India Life Sciences Fund in 2009, manufactures absorbable and non-absorbable sutures, eyeless needles, skin staplers, bone was, surgical meshes and disposable surgical gloves. Its products are exported to at least 50 nations in Europe, South America, Africa and Asia.
According to Technopak Advisors, India's medical textile market is worth INR22.9 billion and is expected to reach INR57.1 billion by 2016. Sutures India is the second largest producer of medical consumables, with a 20% market share. Johnson & Johnson is the market leader.
Private equity firms have typically focused on Indian hospital chains and related healthcare providers, but medical equipment is increasingly an area of interest, driven in part by expectations of consolidation in the industry. In May, Intel Capital committed $18 million to Sudhir Srivastava Robotic Surgery Centre (SSARSC), a provider of advanced robotic surgery procedures, marking its first foray into the country's healthcare segment.
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